I was looking to refinance the mortgage to eliminate the mortgage insurance. Unfortunately, the appraisal came below 20%. The credit union is offering a FHA mortgage at a rate of 3.25%.
Current FHA mortgage at 5.375%
PRINCIPAL & INTEREST: $ 2,171.83
ESCROW: $ 746.75 (which includes mortgage insurance of $ 159.83 per month)
TOTAL MONTHLY PAYMENT: $ 2,918.58
Current balance is $ 348,000.00
FHA mortgage at a rate of 3.25%.
PRINCIPAL & INTEREST $ 1,609.66
ESCROW: $ 795.37 (which includes mortgage insurance of $ 240.12 per month)
TOTAL MONTHLY PAYMENT: $ 2,405.03
Estimate closing cost and prepaid costs will be about $ 12,000. This is without the mortgage insurance premium of $ 6361.25.
I’m not sure this is the right move. Let me know what you think.